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What Is a Commercial Real Estate Brokerage?

Posted on June 18, 2022

Looking to purchase, sell or lease a commercial property? Unless you’re extremely experienced, it can be a challenge to know the steps it takes to finalize a transaction. Whether you own a business that deals with commercial real estate or are an individual looking for investment properties, understanding what services a brokerage offers can make your life easier. A commercial real estate brokerage acts as an intermediary between you and the other party—to help match you with the exact type of property or the right buyer. A brokerage can significantly ease your burden while also ensuring that your needs are met.

Types of Commercial Real Estate Brokerages

There are a few different types of commercial real estate brokerages. Their specialty or focus depends on who they are working for and the desired outcome of their clients.

1. Tenants or Buyers

Some brokerages focus specifically on working for commercial tenants or buyers. They search for office or retail space for their clients, looking for specific requirements that tenants want in a property. Tenant-focused brokerages can also help their clients when it is time to negotiate purchase or lease contracts. They are often well-versed in finding hidden fees or clauses, which helps tenants avoid potential pitfalls.

2. Landlords or Sellers

On the opposite side are brokerages that focus on working for commercial landlords or sellers. They help their clients list properties and find prospective tenants or buyers. This type of brokerage may also be known as a “listing brokerage.”

3. Landlords and Tenants

Some brokerages work for both sellers and buyers or landlords and tenants. This allows them to have a larger clientele and even gives them the chance to match up two different clients—one who is wanting to sell and one who is wanting to buy. There are times when this can lead to a conflict of interest, but a good brokerage will be experienced in avoiding such issues.

4. Both Parties in a Commercial Real Estate Transaction

Occasionally, a brokerage can work for both parties involved in a commercial real estate transaction. This helps in that the buyer and the seller don’t have to go back and forth between two brokerages, but it can get a little hazy legally, since the brokerage’s loyalty is split between both parties.

Common Brokerage Responsibilities

Wondering what else a commercial brokerage does? There’s more to a brokerage than merely buying and selling property for their clients. Here are some of the more common responsibilities:

Real Estate or Leasing Transactions

Obviously, most brokerages assist their clients with real estate transactions or leasing contracts. They may also work to find the most desirable properties and then determine the best terms based on comparable market research. They also help with negotiations and finalizing sales.

Acquisitions

Clients looking to acquire commercial properties use brokerages to do the leg work on their behalf. This often involves scouring area listings and narrowing down options based on desired requirements.

Dispositions

Clients who want to sell their commercial properties also use brokerages. They are responsible for finding potential buyers, determining appropriate pricing based on market research and listing the properties on MLS sites specializing in commercial real estate.

Pros and Cons of Hiring a Commercial Real Estate Brokerage

For many business owners, working with a commercial real estate brokerage saves time and money. It allows for buying and selling properties without having to do the heavy leg work. A brokerage can handle that on their client’s behalf. On the other hand, business owners looking to save money may not want to pay the fees associated with commercial real estate brokerages. Whether you choose to work with a brokerage or not will likely depend on your willingness to pay a little extra to do a lot less work.

When looking for a qualified commercial real estate broker, look no further than Chris Falk. He has the background and experience to guide you both landlords and prospective tenants through the leasing process from beginning to end. Contact Chris today!